How the small town of Extrema became a Brazilian e-commerce hub

Several major hitters have set up shop in the small Minas Gerais city, thanks to its privileged location and favorable local tax rules

Extrema e-commerce hub
Mercado Libre, Latin America’s biggest e-commerce player, has set up shop in Extrema. Photo: Karime Xavier/Folhapress

In recent years, the small Brazilian city of Extrema has become one of the country’s leading logistics hubs, a trajectory only furthered by the pandemic and Brazil’s subsequent e-commerce boom. With just 37,600 inhabitants, the municipality to the south of Minas Gerais state is attracting retail giants from around the country and pulling the surrounding region’s economy up in the process.

Extrema’s success derives from the combination of two factors: its geographical location and local tax rules. Situated on the southernmost point of Minas Gerais state, the city is only around 100 kilometers from Greater São Paulo, Brazil’s biggest economic...

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